With all the uncertainty with Brexit and with the ongoing restrictions related to the plandemic, buying a property in Spain can be a daunting prospect. If you are looking to buy a property in Spain for permanent residence or as a holiday home and will need a Spanish Mortgage it is a good idea that you speak to a registered Spanish Mortgage Adviser first who can advice you on important factors like how much the maximum mortgage you will be able to get which means how much deposit and closing costs you will need to put down.
The amount that you are able to borrow is dictated by many factors like how much deposit you have available and the income and affordability of the client. The Spanish lenders will take into consideration all the income declared on your Tax Return, so all salaries, dividends, self employed incomes and rental incomes are acceptable.
The lenders will study the application based on ‘affordability’, mortgage and loan commitments are measured against your personal income which must be between 30%-35% in order to qualify. For high incomes it is possible the affordability ratio can go up to 40% of net income is considered with a certain lender.
The good news is that once you are approved the mortgage conditions are very attractive. Interest rates can be as low as 2% or less on a variable rate and long term fixed rates can be below 3%. There are also less fees and costs associated with taking a Spanish mortgage since 2019 when the Spanish mortgage lenders are required to pay all the costs associated with the mortgage deed instead of the borrower.
Spanish lenders now only collaborate with fully registered Mortgage brokers registered by the Bank of Spain which gives the client added peace of mind knowing that they dealing with a fully qualified, licensed broker.
By Timothy French – (tim@emac.eu.com)
BANCO DE ESPAÑA EUROSISTEMA
Inscrita en el Registro de Intermediaros del
Crédito Inmobiliario con el número D395
Según Ley 5/2019 del 15 de marza
